Local Rule LBR 2015-1: Trustees - Payment of Administrative Expenses

LBR 2015-1. Trustees - Payment of Administrative Expenses

(a) Expenses Not Exceeding $1,000. The trustee may pay the actual, necessary costs and expenses of preserving the estate, which may include but are not limited to, rent, utilities, taxes, insurance, moving and storage costs, without a court order obtained in advance if: (1) the amount for any single item does not exceed $1,000, (2) when all creditors and parties in interest are notified of the need to file a proof of claim, the notice advises that they may file an objection and request for a hearing on this procedure within 28 days after the date of the notice, and (3) the trustee obtains court approval before or at the time of the court's determination on the trustee's final application for compensation and reimbursement for expenses submitted with the trustee's final report.

(b) Expenses Exceeding $1,000. The trustee may obtain an order approving the payment of administrative expenses exceeding $1,000 by filing a motion and notice substantially conforming to the local form (Trustee's Motion to Approve Payment of Administrative Expense and Notice of Opportunity to Object), providing 14-day notice of a deadline to file an objection. The trustee shall serve the motion and notice on all parties entitled to notice under Bankruptcy Rule 2002 (Bankruptcy Rule 2002(h) applies).

(c) Applicability of Rule. Subdivisions (a) and (b) of this rule do not apply to the following.

(1) Use of Non-Estate Funds. The trustee may pay administrative expenses from non-estate funds and later seek court approval for reimbursement under Bankruptcy Rule 2016.

(2) Operation of a Business. The trustee may pay administrative expenses related to operating a business, including the leasing of real or personal property, if an order obtained under § 721 authorizes such payments.